The European Commission is expected to adopt, on 24 February, a positive recommendation on the opening of accession talks with Iceland. In reference to the troublesome Icesave bank collapse, which put Iceland on a collision course with the Netherlands and the UK, the so-called ‘avis’ will, according to EU sources, clearly state that any bilateral issues should not hold up the accession process.

Following the refusal by President Ólafur Ragnar Grimsson to sign the bill on a controversial compensation deal for the UK and the Netherlands for the Icesave bank collapse into law, a national referendum was announced for 6 March in Iceland. The bill, narrowly approved by the Icelandic parliament on 31 December 2009, defines the terms of the payout of €3.8 billion to London and The Hague for having compensated more than 320,000 British and Dutch savers who lost money in the collapse of the Icelandic bank in 2008.

Both the UK and the Netherlands reacted angrily to Iceland’s decision, threatening to block the country’s EU membership process. Since then, the three countries have been trying to negotiate a new agreement. According to media reports, Iceland rejected, on 22 February, the latest proposal from the UK and the Netherlands, under which Reykjavik would pay the €3.8 billion but would have a seven-year grace period.

By regarding the Icesave case as a bilateral issue and therefore irrelevant to the accession process, the newly appointed European Commission follows the rules set by its predecessor. The enlargement strategy for 2009-2010, adopted by the Commission in October 2009, clearly says that “bilateral issues should be resolved by the parties concerned and should not hold up the accession process”. According to the rules of procedure, an applicant country’s assessment should be based on its capacity to meet the criteria set by the Copenhagen European Council of 1993.

According to the rules of procedure, it is the European Council that eventually decides, taking into consideration the Commission’s ‘avis’, on the opening of accession talks. The decision requires unanimity. It could happen - as was the case with Macedonia - that despite the Commission’s positive opinion the opening of talks could be blocked.

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Copenhagen criteria

An applicant country needs to have:

- stable institutions that guarantee democracy, the rule of law, human rights and respect for and protection of minorities

- a functioning market economy, as well as the ability to cope with the pressure of competition and the market forces at work inside the Union

- the ability to assume the obligations of membership, in particular adherence to the objectives of political, economic and monetary union.